Is Apple Making All US iPhones in India Now? See Report

Apple plans to produce all the iPhones intended for the US market in India, as per a recent Financial Times (FT) report. The development marks a big change in Apple's worldwide supply chain plan, diminishing its dependence on China and growing its base in India.

                                                                                                   Source: Rajeev Mantri / X

Now, roughly 25% of all iPhones are manufactured in India. Apple intends to increase this considerably now, so that the whole production of iPhones destined for the US market will be in India by as soon as 2025 or 2026, according to people briefed on the plans.

Why India is key to Apple's strategy

India provides Apple with a number of benefits. One, it assists the company in diversifying its supply chain in the face of continuing US-China tensions. Two, India possesses an increasing and qualified workforce and government incentives for electronics manufacturing. 

Apple's primary suppliers, Foxconn and Tata Electronics, are quickly increasing their presence in the country.

Foxconn, which produces approximately 70% of all iPhones worldwide, already has big factories in Tamil Nadu and is constructing new factories in Karnataka. Tata Electronics too is expanding its manufacturing capacity and recently acquired Wistron's Indian unit to become the first Indian company to produce iPhones.

A boost for 'Make in India'

The action aligns with India's 'Make in India' campaign, intending to make the country a world electronics manufacturing centre. Union Minister Ashwini Vaishnaw said recently that Apple has already exported iPhones worth more than $10 billion from India in FY24.

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What does it mean for the industry?

Apple's move can have long-term implications for international supply chains and induce other technology giants to look into India as a manufacturing opportunity. This can also increase job creation, exports, and India's position in international tech manufacturing, according to experts.

As Apple looks to India to make iPhones, it is a key milestone in the rise of India as a tech manufacturing hub and reflects the increasing imperative for firms to diversify away from China.